Alcohol taxes will now rise with inflation rather than above it. However Somerset cider makers were given a little extra boost, along with Scottish whisky producers, as duty was frozen. Beer duty will fall 1p for the second year.

Tobacco duty will continue to rise by two per cent a year.

Fuel duty rise in September scrapped.

Saving

Tax free savings limit for ISAs raised to £15,000. Two different kinds of ISAs, cash and stocks, merged into one.

Big pensions reform with people given more control over how they spend their pension pot from defined contributions schemes upon retirement.

Personal tax:

The personal allowance, the point where you start paying income tax, will rise to £10,500 next year. It was already going up to £10,000 next month. It was save you £100 a year.

The 40p threshold will rise one per cent. That means more people will pay it but the cost will be offset by the rise in the personal allowance mentioned above.

Welfare spending:

The country’s welfare spending, excluding pensions, will be capped at £119 billion next year. That means if costs go above that the Government will have to ask Parliament for permission. Not immediate affect on people but will likely lead to tighter benefit spending.

For business:

Double lending to exporters to £3 billion and cut the interest rates charged on those loans by a third.

Double the number of apprenticeships and grants for smaller businesses to support apprenticeships extended.

Annual tax-free investment allowance for businesses spending on capital projects such as new factories double to £500,000

The economy:

Growth revised up to 2.7 per cent for 2014, then 2.3 in 2015, and 2.6 per cent in 2016.

Economy will grow to bigger than it was before the crash later this year.

We are still expecting to borrow £108 billion this year and £95 billion next year.

Other:

Air passenger duty (tax on flying) reformed so all long haul flights pay same rate plus a new charge for private jets which had been exempt!

Start-up support for new air routes from regional airports, such as Bristol

4 comments

I think the best things to come out of this is the freeze on fuel duty and increase in personal allowance... neither will make a huge difference savings wise, but at least it's not the opposite happening. The advert released focusing on alcohol and bingo is rather shortsighted though!
Laura - https://twitter.com/tbilaw

"However Somerset cider makers were given a little extra boost, along with Scottish whiskey producers, as duty was frozen."
Why would Scottish disteilers be making Irish or other foreign whiskey, rather than their own whisky?